Renewable energy player Gaelectric raises €65m

25 Mar 2013

Swedish investment group Proventus Capital Partners and German bank Nord/LB have concluded a €65m funding deal with Irish renewable energy player Gaelectric. The debt finance raised will allow Gaelectric to deliver its portfolio of 164MW of wind energy project which, when developed out by 2017, will have a total estimated investment value of €250m.

Gaelectric has a portfolio of 164MW of generation capacity across 13 on-shore wind energy projects that will go live by 2017.

The company has also concluded a framework agreement with German turbine manufacturer Enercon, which will see Enercon technology deployed on all Gaelectric sites covered by the current funding round.

Proventus Capital specialises in providing development capital to mid-sized companies. Nord/LB is one of Germany’s largest commercial banks.

McCann Fitzgerald and RBC Capital Markets assisted Gaelectric with the transaction.

The funding includes a senior debt package from Nord/LB to finance construction of the 13.8MW wind energy project at Carn Hill in Antrim.

“The funding we have secured will, together with our agreement with Enercon, underpin the delivery of our onshore wind energy portfolio in Ireland which comprises approximately 164MW of projects and represents a total investment cost of approximately €250m. We are particularly delighted with the opportunity to partner with Proventus, Nord/LB and Enercon, all of whom have international reputations and track records that will be of immediate benefit to Gaelectric.

“In our discussions with funders and investors, we have been able to provide clear visibility of a portfolio of projects which have been substantially de-risked and which will be commissioned by 2017.  

“We now have 120MW of wind energy projects with full planning approval and grid connection offers. Some 18MW of this portfolio will be generating renewable power by Q1 2013. Our onshore portfolio in Ireland will create sufficient generation capacity to power the energy needs of 85,000 homes and displace 262,000 tonnes of CO2 per annum,” Gavin said.

Wind turbine image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years